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Covid-hit India sees extreme slide in business activity
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SME Times News Bureau | 03 Jun, 2020
Unfavourable economic effects of the Covid-19 outbreak heavily dented India's service sector during May.
Consequently,
India's overall business activity which includes the output of both
services and manufacturing sectors in India remained at historic low
levels.
In terms of index reading, the IHS Markit India Services
Business Activity Index recorded 12.6 in May from April's unprecedented
low of 5.4.
The index reading has remained at a level which,
prior to the coronavirus pandemic, was unparalleled in over 14 years of
data collection and pointed to an extreme drop in services activity
across India.
Accordingly, the Composite PMI Output Index, which
measures combined services and manufacturing output, signalled a further
severe contraction in private sector business activity during May.
The
index posted a reading of 14.8, from 7.2 in April, the latest reading
was consistent with a further decline in output which was unparalleled
prior to the Covid-19 outbreak.
"Service sector activity in India
is still effectively on hold, latest PMI data suggest, as output fell
at an extreme rate once again during May. Given t he stringency of the
lockdown measures imposed in India, it is no surprise to see the
severity of the declines in April and May," said Joe Hayes, Economist at
IHS Markit.
"Demand for services, both domestically and
overseas, continued to plummet in May as clients' businesses remained
closed and footfall remains drastically below normal levels."
"With
economic output set to fall enormously in the first half of 2020, it is
clear that the recovery to pre-COVID-19 levels of GDP is going to be
very slow."
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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